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The Male Marital Wage Premium: Sorting Vs. Differential Pay

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  • Trond Petersen
  • Andrew M. Penner
  • Geir Høgsnes

Abstract

The authors examine whether male marital and parenthood premia arise due to differential pay by employers or from differential sorting of employees on occupations and establishments. They investigate these premia using matched employee-employer data from the period 1979–96 in Norway, a country with increased pressures on men to be more active in the family sphere and in which public policy has aimed at remaking the family institution. We find that the effect of marriage, and to a lesser extent of children, occurs mostly through sorting on occupations and occupation-establishment units. The role of differential pay from employers is marginal in explaining the marital and parenthood premia. Results assessing within-individual changes in wages suggest that about 80% of the marital premium is due to selection. The men who eventually marry and/or have children sort into the higher-paying occupations and occupation-establishment units even prior to marriage and parenthood.

Suggested Citation

  • Trond Petersen & Andrew M. Penner & Geir Høgsnes, 2011. "The Male Marital Wage Premium: Sorting Vs. Differential Pay," ILR Review, Cornell University, ILR School, vol. 64(2), pages 283-304, January.
    • Handle: RePEc:sae:ilrrev:v:64:y:2011:i:2:p:283-304
    DOI: 10.1177/001979391106400204
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    References listed on IDEAS

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    5. Taryn Ann Galloway & Rannveig Kaldager Hart, 2015. "Effects of income and the cost of children on fertility. Quasi-experimental evidence from Norway," Discussion Papers 828, Statistics Norway, Research Department.
    6. Bruno Jeandidier & Helen Lim, 2015. "Is there justification for alimony payments? A survey of the empirical literature," Working Papers hal-02105214, HAL.
    7. Delgado Helleseter, Miguel & Kuhn, Peter J. & Shen, Kailing, 2016. "Age and Gender Profiling in the Chinese and Mexican Labor Markets: Evidence from Four Job Boards," IZA Discussion Papers 9891, Institute of Labor Economics (IZA).
    8. Ashwin, Sarah & Isupova, Olga, 2014. "“Behind every great man…”: the male marriage wage premium examined qualitatively," LSE Research Online Documents on Economics 55689, London School of Economics and Political Science, LSE Library.
    9. Suzana Koelet & Helga de Valk & Ignace Glorieux & Ilse Laurijssen & Didier Willaert, 2015. "The timing of family commitments in the early work career," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 32(22), pages 657-690.

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